Rupee strengthens against US dollar on FII buying

Mumbai, Feb. 2 -- The Indian rupee on Thursday strengthened for the seventh consecutive session against the US dollar as foreign institutional investors (FIIs) continued to buy in local equity markets.
At 1.50pm, the home currency was trading at 67.44, up 0.05% from its previous close of 67.48. The local currency opened at 67.42 a dollar and touched a high of 67.39, a level last seen on 8 December 2016.
India's benchmark Sensex index rose 0.23% or 64.38 points to 28,206.02. So far this year, Sensex has risen 5.8%.
India's 10-year bond yield was at 6.407% from its Wednesday's close of 6.431%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has gained 0.5%, while FIIs have sold $6.4 million in local equity and $382.40 million in debt markets.
US Federal Reserve officials gave little direction on when it might raise rates next. The Fed acknowledged rising confidence among consumers and business and reiterated its intention to lift rates gradually as the labour market tightens.
The central bank left its options open before Friday's jobs report delivers the latest reading on labour market strength and as they grapple with the uncertainty created by a new presidential administration. Members differed over assumptions regarding the extent to which policies proposed by President Donald Trump might boost inflation, Bloomberg reported.
Most Asian currencies were trading higher. South Korean won was up 1%, Japanese yen 0.37%, Taiwan dollar 0.26%, Singapore dollar 0.16%, China offshore 0.16% and Thai baht 0.1%. However, Malaysian ringgit was down 0.13%.
The dollar index, which measures the US currency's strength against major currencies, was trading at 99.5, down 0.14% from its previous close of 99.641.